Shopify Shares Slide 12% Despite Strong Earnings and Revenue Growth

Core Viewpoint - Shopify Inc. reported strong fourth-quarter earnings and issued positive guidance for the first quarter, yet its shares fell over 12% intra-day, indicating market concerns despite the positive financial results [1]. Financial Performance - For the fourth quarter ended December 31, 2025, Shopify achieved adjusted earnings per share of $0.57, surpassing analyst expectations of $0.51 [2]. - Revenue for the quarter increased by 31% year over year to $3.67 billion, exceeding the consensus forecast of $3.59 billion [2]. - The company marked its eleventh consecutive quarter of revenue growth of 25% or higher, excluding logistics [2]. - Free cash flow reached $715 million during the quarter, resulting in a free cash flow margin of 19% [2]. - Gross merchandise volume (GMV) grew by 31% to $123.84 billion [2]. Future Guidance - For the first quarter of 2026, Shopify expects revenue growth in the low-thirties percentage range year over year, consistent with the fourth quarter and above analyst expectations of 25.2% growth [4]. - The company anticipates a free cash flow margin in the low-to-mid teens, slightly below the level recorded in the same period of 2025 [4].